Monday, 20 August 2012

A consideration of George Soros' theories of "reflexivity" applied to gold development stocks.

.......application to gold development stocks: when a company with a gold project trades with a high equity value, potential buyers assign high values to the project and the company, confident that the company will be able to finance the project. In fact, the higher the stock goes, the easier it is to finance the project, and, therefore, the more value the project has to the company, and the more valuable the company.

However, if the market corrects lower and the value of the company shrinks, then financial observers will question how the company will finance the project, and therefore assign a lower value to the company, forcing the stock lower, reducing the value of the company, etc.

Sunday, 5 August 2012

The recent departures of Chief Executives at major gold miners points to failures in the industry and perhaps more to weak share price performances over the past few years relative to gold.The XAU:Gold ratio tells the tale

Thursday, 2 August 2012

A large review of global 1m oz gold mines and deposits, including ownership and grades.
Remember grade can be deep or shallow so cannot simplistically indicate the economics of recovery, but as full a list as I think I've seen made publicly available.

Followers

United Kingdom Investors in Junior Gold Stocks - ISA Eligibility

United Kingdom (UK) Investors seeking exposure to Junior Gold Stocks may wish to ensure that profits are free of capital gains tax.

This can be achieved by holding stocks in an ISA account. Current allowances are over £10,000 pa for both yourself and a spouse if you have not already subscribed to cash ISAs.

Any "Main Board" stocks can be held. With regards to junior gold stocks referenced here this means you can hold any stocks listed on the Toronto exchange, ".TO" on stock ticker references within an ISA. Australian stocks .ASX can also be held within ISAs and this can give exposure to very junior companies, although the Australian market is an area I have not had much exposure to.

You will not usually be allowed to hold Canadian Venture exchange stocks, ".v" ticker references within an ISA account. AIM stocks are also now ISA eligible.

UK Investors can realise capital gains of approx £10,000 pa before capital gains tax becomes due, with two allowances for both yourself and a spouse and you may roll forwards losses.

I have found TD Waterhouse, now TD Direct in the UK to provide very easy dealing on the Canadian exchange. Therefore ensure you realise gains before the new April UK tax year within your allowance and consider realising losses to roll forward.

NOT SMALL PRINT - DISCLAIMER

At all times I may have invested in what I find, I may have identified the stock only to watch while I concentrate on other investments, I may have sold taking profits or losses. I am not an advisor. Although I attempt to find good information it may not be accurate. Links to other sites are of interest to me but I do not offer recommendation of their accuracy or agenda. If you want to invest in this area you must do your own due diligence, it is your money. You have not paid for my research or views.This is a very risky area and can really only be defined as speculation, not investment.